Fate Therapeutics, Inc. (FATE) Stock: Why It’s Climbing

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Fate Therapeutics, Inc. (FATE) is working its way for to the top in the market in today’s trading session. The company, focused on the biotechnology space, is currently trading at $21.54 after climbing 5.33% so far in today’s session. In terms of biotech companies, there are several aspects that have the potential to cause movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories associated with FATE:

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Jul-08-19 08:15AM Are Natural Killer Cells the Next Big Thing in Immunotherapy?
Jun-19-19 06:02PM Hedge Funds Have Never Been This Bullish On Fate Therapeutics Inc (FATE)
Jun-05-19 05:06AM Edited Transcript of FATE earnings conference call or presentation 7-May-19 9:00pm GMT
May-30-19 04:05PM Fate Therapeutics to Present at the Jefferies 2019 Healthcare Conference
May-29-19 08:40AM Fate Therapeutics (FATE) Surges: Stock Moves 6.8% Higher

Nonetheless, when making a decision to invest, investors should look at much more than news, especially in the highly speculative biotechnology sector. Here’s what’s happening with Fate Therapeutics, Inc..

What We’ve Seen From FATE

While a move up on a single session, like the move that we’re seeing from Fate Therapeutics, Inc. may make some investors excited, a single session move alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It’s always a good idea to dig into trends experienced by the stock just a single trading day. When it comes to FATE, here are the trends that we’ve seen:

  • Past 5 Sessions – Throughout the past five trading sessions, FATE has generated a change in value in the amount of 1.99%.
  • Past 30 Days – The performance from Fate Therapeutics, Inc. throughout the last month works out to 30.23%.
  • Past Quarter – Throughout the last three months, the company has produced a ROI that comes to 28.06%
  • Past Six Months – In the previous 6 months, investors have seen a change of 22.46% from the stock.
  • Year To Date – Since the the first trading session of this year FATE has resulted in a ROI of 67.89%.
  • Full Year – Lastly, throughout the past full year, we have seen movement that comes to 83.01% from FATE. Over this period, the stock has traded at a high of -3.62% and a low price of 149.31%.

Ratios Worth Watching

Digging into various key ratios associated with a company can give investors an understanding of how dangerous and/or potentially profitable a stock pick may be. Below are some of the most important ratios to look at when digging into FATE.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors are expecting that the value of the stock is headed for declines. In general, biotechnology stocks can have a higher short ratio. However, we also see a lot of short squeezes in the sector. Nonetheless, with regard to Fate Therapeutics, Inc., it’s short ratio is 10.59.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Basically, they measure If a company is able to pay its debts as they mature with only current assets or quick assets. Because many biotech several companies are heavily reliant on the continuation of support from investors, these ratios can be upsetting. However, some gems in the biotechnology space come with great current and quick ratios. When it comes to FATE, the quick and current ratios add up to 6.40 and 6.40 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets owned by the company to the share price of the stock. In this particular case, that ratio works out to 2.25.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of shares. Several clinical stage biotech companies struggle to keep cash on hand. So, if you’re considering an investment in a stock in the biotechnology sector, this is a very important ratio to think about. In this case, the cash to share value works out to 2.79.

Analyst Opinions With Regard To Fate Therapeutics, Inc.

Although it’s never a good idea to avoid doing your DD and blindly following the thoughts of analysts, it is a good idea to use their analysis when validating your own due diligence when it comes to making investment decisions in the biotech space. Here are the most recent moves that we’ve seen from analysts when it comes to FATE.

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Jul-12-19 Initiated Oppenheimer Outperform $27
Jun-13-19 Initiated Mizuho Buy
Jun-07-19 Initiated ROTH Capital Neutral $20
May-31-19 Initiated Guggenheim Buy
May-24-19 Resumed Citigroup Buy $26

Is Big Money Interested in Fate Therapeutics, Inc.?

An interesting fact I’ve come to understand so far in my short time in existence is that smart money tends to follow the moves made by big money investors. In general, investors that are trying to play it relatively safe will pay close attention to trades made by institutional investors and insiders of the company. With that said, what does the big money picture look like in regard to FATE? Here’s what’s going on:

  • Institutional Investors – Currently, institutions hold 97.80% of the company. Nonetheless, it’s worth noting that institutional ownership has seen a move in the amount of 2.39% throughout the past quarter.
  • Investors On The Inside – When it comes to insiders, members of the management team and others close to FATE currently hold 1.00% of the company. Insider ownership of the company has changed in the amount of -42.20% over the past quarter.

How Many Shares Of FATE Are Available?

Investors and traders seem to be interested in the counts of shares both outstanding and available. In terms of Fate Therapeutics, Inc., currently there are 65.64M and there is a float of 63.73M. These data mean that out of the total of 65.64M shares of FATE in existence today, 63.73M are available to trade hands in the public space.

I also like to take a look at the short percentage of the float. Think about it, when a high portion of the float is sold short, the overall opinion among investors is that the stock is going to take a dive. As far as it relates to FATE, the percentage of the float that is shorted currently sits at 13.09%. Most traders believe that a high short percent of the float is any percentage over 40%. In my research, I have seen that any short percent of the float over 26% is likely a risky play.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.31. In the current quarter, analysts see the company producing earnings in the amount of $-0.32. Over the last 5 years, FATE has generated revenue in the amount of $37.30% with earnings coming in at -1.70%. On a quarter over quarter basis, earnings have seen movement of -13.60% and revenue has seen movement of 160.00%.

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